Biogas supplier insolvency proceedings pose risk for German local utilities – association

The insolvency proceedings at leading European biogas trader BMP Greengas could pose a significant risk of financial damage of “at least 150 million euros” for affected German local utilities, said the Association of Local Utilities (VKU). This was the result of an ad-hoc survey by the VKU of its member companies that are BMP green gas customers. VKU head Ingbert Liebing warned that the proceedings even had “the potential to slow down the heating transition. Affected municipal utilities now have to pay for a disaster for which they were not responsible, and probably at the expense of necessary investments to achieve climate targets,” he said. Among the municipal utilities that participated in the survey, 34 stated they had a contractual relationship with BMP Greengas, reported Handelsblatt. According to the VKU's assessment, these are all of the relevant municipal utilities affected by the biogas wholesaler's difficulties. 81 percent of the affected municipal utilities stated that the current uncertainty regarding deliveries of BMP Greengas would jeopardise their conversion to a climate-neutral heat supply, said VKU.

Biogas plays a key role in the heat transition away from fossil fuels to sustainable, renewable sources. Many municipal utilities use biogas in combined heat and power (CHP) plants. Such plants supply heat and electricity and are particularly efficient.